SEC Gave "Preferential Treatment" to Wall Street CEO

[No Elephants]

Report: SEC Gave "Preferential Treatment" to Wall Street CEO
Attempts to Question Morgan Stanley's John Mack "Connected" to Firing of SEC Lawyer


The report also said, "the information was provided specifically because John Mack was being considered for a high-level position in a large investment bank, and would not be available to another potential target of lesser means or reputation."



After Aguirre was fired, the SEC ultimately took Mack's testimony and cleared him of wrongdoing.

A statement issued on his behalf by Morgan Stanley said, "John Mack had nothing to do with the SEC's decision if or when it would seek his testimony in 2005. As soon as he was asked, John Mack immediately agreed to provide his testimony and has cooperated fully with the SEC throughout this matter."

Aguirre says Mack hired a former Manhattan US attorney, the former head of the SEC enforcement division and other former SEC officials to pressure his bosses to curtail the investigation.

The SEC says changes have been made since its current chairman, Christopher Cox, took over.

The Inspector General did not find that "cases are generally affected by political decisions or the prominence of the defendants."

Read a statement from the SEC here.

The SEC would not say what, if any, disciplinary action would be taken against Aguirre's superiors, as recommended by the Inspector General.

http://abcnews.go.com/Blotter/Story?id=5970263&page=2